Milar Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate
Direct materials		10.0	pounds	$	9.50	per pound
Direct labor		0.8	hours	$	32.00	per hour
Variable overhead		0.8	hours	$	15.00	per hour

In January the company produced 3,430 units using 13,720 pounds of the direct material and 2,864 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $14,480. The actual direct labor cost was $91,236 and the actual variable overhead cost was $41,188.

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The labor rate variance for January is:

• $412 F

• $412 U

• $3,428 U

• $3,428 F